Scott Brown on Budget & Economy

Republican Jr Senator

2010: Banks should not pay $19B price for bank reform

The Democrats had lost the 60-seat majority in January, and now the bill needed the support of MA's newest senator, Republican Scott Brown. Wasting no time, he threatened to hold up the financial bill unless the Democrats agreed to reopen the nearly
completed package to add one more provision: a financial break for the big banks.

Ever since the US began writing rules for financial institutions, the banks have always paid the costs of regulation. The price tag for enforcing the new bank reforms was
estimated to be about $19 billion, and the current version of the reform bill specifically said that the biggest financial institutions would pay for it.

Now Senator Brown threatened to hold up the bill unless that provision was changed. He insisted
that the taxpayers, not the big banks, pick up the tab. Barney Frank was furious, but he didn't have much choice: the deal was cut, the final bill was passed by both the House & the Senate, and the legislation was sent to the president for his signature.

Cut spending & keep the tax burden low

Q. When you think about the US budget deficit, do you prefer tax reform or spending cuts?

A. Senator Brown supports streamlining and consolidating wasteful and duplicative government programs, cutting spending, and comprehensive tax reform as a means
to reduce the budget deficit. Senator Brown believes that keeping the tax burden low is an important factor in economic growth, which will be key to resolving our jobs, debt and deficit problems.

No new regulation of the financial markets

Coakley's campaign, in an ad released this week, describes Brown as someone who would march in step with "Washington Republicans," portraying him as anti-government and pro-business. The ad says Brown will "block tougher oversight of Wall
Street."

Brown has said that he's not in favor of new regulation of the financial markets, preferring to let "private enterprise try to get us out of this mess."

People are angry over tax and spend mentality and $12T debt

Q: You're probably gonna win the primary. But you probably will not win the general election in a Democratic state. So why go through this?

A: I respectfully have to disagree with you this is not a Democrat state; it's not a Kennedy state; it's the
people, and right now they're angry. They tried the tax and spend mentality and don't forget we already have twelve people down there right now [in Massachusetts' delegation to the U.S. Congress] that are voting the same way on the same special interest
there. Taxing and spending us to a twelve trillion dollar national debt. People are telling me around the state that they want somebody different has been an independent thinker and talker. I have been representing now the state house's fiscal
conservative watchdog so I have to respectfully disagree. You should come and see the enthusiasm and excitement to put somebody down there [in D.C.] who is not like the others.

Let private enterprise try to get us out of this mess

Q: Today is the one-year anniversary of the start of the financial crisis in the U.S. It was one year ago today that Lehman Bros., the investment bank, went belly up, and within days the U.S. economy was pretty much in a full-scale panic.
Where are you on that?

A: It's all about the economy and jobs. Pulling back on the financial [regulations], I think if you do too much too soon, it doesn't have a chance to catch up and see if we can work out of this ourselves through free
enterprise, through private enterprise, intervention and creativity. So I'm all in favor of just holding back for a little bit and letting private enterprise try to get us out of this mess.

Q: Is another government stimulus plan a good idea?

A: I don't think so. We are leaving a legacy, amassing amazing amounts of debt, passing it on to our kids and grand-kids, and at some point we are just going to be top heavy.

No cap on bankers' salaries

Q: Congressman Barney Frank has been a leader in a movement on Capitol Hill to make financial industry executives more accountable, hold their salaries in check in the process. Do you think that's a good idea?

A: I don't agree with Barney's proposal
on that. We should let the free-enterprise and the business market do what it needs to do to get our economy back and running. I'm concerned that government intervention into private businesses is just crossing the line.

Voted NO on $300M to offset the budget deficit via bonds

The state shall issue and sell bonds of the Commonwealth in an amount
[up to] $300,000,000. All such bonds shall be payable not later than June 30, 2010. All interest and payments on account of principal on such obligation bonds issued pursuant to this section shall be special obligations of the Commonwealth.
[Establishes a 7-year bond program to borrow money to pay off the budget deficit].